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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consideration transferred
Hi i want to know if the question give market price of sub’s share price prior to acquisition by parent, say $2.50 and also give in the SOFP, investment in subs under NCA, say 16000 OSC of $0.50 each of subs, which value should supersede in the calculation of consideration transferred?
Thanks
Hi,
When you are talking about the consideration transferred then you need to think about whether it is cash consideration or a share for share exchange.
If P is paying cash then the consideration is valued at the amount that is paid per share.
If P is exchanging its own shares in return for the acquisition of S’s shares then the consideration is valued using P’s share price as it isssuing its own shares.
Have a look at the videos and see if you can apply the above to the questions.
Thanks
oh okay thank you!